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As Yields Continue to Decline and Exxon Strikes a Deal, the Dow Rises for a Fourth Day

Stocks increased on Wednesday as traders shrugged off recent inflation data and celebrated a significant merger in the energy sector. From the 16-year highs set last week, Treasury rates have been declining ever since.

The Dow Jones Industrial Average increased by 117 points, or 0.4%, and is now on pace to advance for a fourth straight day. Along with the Nasdaq Composite, the S&P 500 also increased by 0.4%.

The producer price index increased by 0.5% in September, above the Dow Jones projection of a 0.3% increase. Although the September figure was slightly higher than economists had anticipated, it nevertheless indicated a slowdown from the 0.7% rise in producer prices in the preceding month.

Even after the higher-than-expected inflation figures, the yield on the 10-year Treasury fell and hit its lowest point since September 29. Recently, the 10-year fell more than 5 basis points to 4.59%. While this was happening, the 2-year yield increased just 0.1 basis points to 4.993.

On Tuesday’s “Closing Bell” on CNBC, Lauren Goodwin, director of portfolio management at New York Life Investments, said: “If rates continue to move lower, I think that will be the key driver of a reasonable return in the equities market.”

Source (CNBC)

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